Waste management companies look for govt. support

They want the Corporation to set up a waste management park or provide them land to erect sheds to receive and sort waste

November 20, 2019 12:17 am | Updated 04:08 am IST - COIMBATORE

The Corporation withdrawing from collecting waste from bulk waste generators has seen waste management companies enter the business. The firms look for support from local bodies, State and Central Governments for the trade to take off and be sustainable.

The Corporation withdrawing from collecting waste from bulk waste generators has seen waste management companies enter the business. The firms look for support from local bodies, State and Central Governments for the trade to take off and be sustainable.

With the Coimbatore Corporation and a few other local bodies declaring that December 1, 2019 onwards they will not collect waste from bulk waste generators, the business opportunity for private players in waste management has grown.

As per Municipal Solid Waste Management Rules, 2016, apartments, restaurants and other commercial establishments that generate more than 100 kg waste a day should process their waste or engage waste management companies for proper disposal of waste.

In Coimbatore, the Corporation withdrawing from collecting waste from bulk generators has seen waste management companies enter the business. From one company a few years ago, there are at least half-a-dozen now that collect waste from apartments, restaurants and commercial establishments.

“A few years ago, ‘No Dumping’ was the only company catering to around 65 apartments. Today there are three or four companies that cover 160 apartments and a few restaurants,” says Suresh Bhandari, a waste management company owner.

This number will only grow as more apartments and commercial establishments will realise sooner than later that they will have to engage waste management companies for proper disposal of waste, he adds.

Restaurants too seem to have realised the need for engaging such a company that specialises in processing food waste and other organic waste. The hoteliers association in the city is engaged in talks with KT Greens, a company in Madurai that specialises in the trade.

These waste management companies that see huge potential to grow and make money in waste management want the local bodies and governments to do more than facilitate their trade. “It is not enough if the local bodies direct the apartments or facilitate talks between hoteliers and waste management companies; they should, besides enforcing rules, create an environment for the waste management business to grow,” Mr. Bhandari says.

The local bodies can begin by allotting land to waste management companies as it now appears to be a big problem, suggests R. Raveendran, an activist who recently facilitated an exhibition for bulk waste generators to meet companies in waste management business.

Hurdle

“In Coimbatore, land is the biggest hurdle as the companies need land to erect sheds to receive and sort waste. If the Coimbatore Corporation gives land it will be encourage more people to enter waste management business. It will better if the Corporation creates a waste management park to house all waste management companies at a place.”

The Corporation or local body providing land will also help the companies either cut loses or make profit, says A. Sundar Raj of Adhira Recykleaning, a company engaged in dry waste processing. “I pay ₹ 13,000 for a small piece of land outside the city. If the Corporation provides the land at no cost or marginal cost, it will help me engage more persons for sorting. And if this land is within city limits, it will also help bring down my transport cost.”

The establishment of a waste management park will be beneficial in more ways than one, says Prasanth Omanakuttan of Green Era Recyclers, a company engaged in recycling electronic waste.

“Having all waste management companies at one place will help each one of those, as the output of one company will be the input for another.”

But land or power tariff concession are not the only support that the waste management companies are looking for. “There is much more that can be done and local bodies alone cannot do it. The State Government must bring out a policy for waste management companies. It should offer concessions, frame rules and doing so will encourage entrepreneurs,” he says.

‘Recognise the companies’

“The first step the Government can take is recognising or empanelling the companies so that they have some kind of legitimacy while approaching the bulk waste generators. This will close the doors for fly-by-night operators or those who do not have proper waste processing facility.”

The Government can then explore helping the companies by subsidising machinery cost or facilitating buying the end product, says K. Tirupathi of KT Greens.

“Just as the Government provides subsidy for buying solar panels, it can subsidise machinery cost of companies engaged in biogas generation or any waste management model. Further, it can help in selling the end product.”

On the tax front too the companies expect the Central Government to offer concessions and tax holiday, if possible. “I pay 18% tax on waste coming into my facility, but get to levy only 5% on segregated waste going out,” Mr. Omanakuttan points out.

Mr. Bhandari says the Central Government should treat the waste management companies as start-ups to offer loans to meet capital and operating costs so that waste management becomes an organised trade. At present it is regulated.

If the Central and State governments were to take steps to formalise the waste management business, local bodies will be obligated to recognise them, provide an enabling environment and the bulk waste generators mandated to engage only such authorised players.

Coimbatore Corporation officials say the exhibition that the civic body organised is just a beginning and as an urban local body it will do all within its powers to encourage such waste management companies.

It will also forward the demands of the companies to the Government.

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